Filing seeks PJM substitute

Source: BY KELSEY TAMBORRINO. Politico • Posted: Thursday, May 21, 2020

FERC’s Chatterjee is likely to face questions at today’s monthly meeting about a new regulatory filing in New Jersey from merchant generators seeking a work-around for the commission’s December decision to limit participation of renewable and nuclear energy in the PJM capacity market. The Electric Power Supply Association on Wednesday asked New Jersey to propose that PJM adopt a “substitution auction” that would allow offshore wind to participate in the long-term capacity market when another power plant retires.

Such a structure is already in place in New England , but it has received criticism from clean energy groups because little renewable power has taken advantage of it yet. EPSA wrote that a similar program “could accommodate New Jersey’s offshore wind goals while maintaining the unquestionable benefits of the competitive markets.” But over the longer term, the generators urged PJM to adopt a price on carbon or clean energy standard.

Nuclear plant owners PSEG and Exelon also filed in the New Jersey proceeding, asking the state to withdraw from the long-term capacity market using existing authority called the “Fixed Resource Requirement.”